Course Overview

Vendor management is the process that enables a company to take necessary steps to identify key suppliers/vendors to work with. These individuals manage their performance and control costs. This process will help educe potential vendor-associated risks, ensure outstanding service delivery, and get long-term value from suppliers.

Why is vendor qualification important?

Suppliers and vendors play an important part in the success of a business. Hence, it is critical for the company’s smooth operation and profitability to have a formalized system in place to track and assess supplier performance. Most successful organisations today, have developed their relationship with suppliers and vendors. In a Partnership, they can grow at a rapid pace. As a result, the selection methods and criteria used in “Partnering” with suppliers, has become of critical value.

What is the vendor management process?

There are procurement decisions made for acquiring components, raw materials, manufacturing, and testing equipment, and even consulting services. These decisions should be well-informed and documented via a vendor certification process. Poor purchasing decisions can result in problems that affect product quality, regulatory compliance, company earnings, and even the company’s reputation. This entails the vendor management process.

Now, have you spent hours, days, or weeks vetting vendors who you know can’t or won’t satisfy your criteria?

Have you encountered internal Corrective and Preventive Actions (CAPAs) as a result of your vendor certification and auditing procedures? Have you ever considered whether or not an onsite vendor audit is required? This Zoe training course has the answers to these and many other questions.

This Zoe training course will teach you how to create a sustainable vendor qualification framework. You will be able to build an effective vendor management system. The modules will take the participants through a systematic approach to learning. We will demonstrate the best methods to improve vendor performance and ensure contract compliance, as well as, provide strategic and tactical insights.

Course Objectives 

Participants in this training course will be empowered to:

• Develop a framework and structure to developa sustainable vendor qualification program
• Choose the best potential supplier/vendor, and how to avoid common pitfalls
• Be able to create checklists, supplier assessments questionnaires & scorecards
• Create meaningful performance metrics and objectively measure supplier performance
• Utilize tools to engage with suppliers to establish a meaningful working relationship
• Learn how to use the performance results for continuous improvement
• Learn best practices and broaden your knowledge of a variety of sourcing strategies
• Improve your knowledge of contract relationship management
• Gain confidence in handling contract-related disputes
• Learning methods to identify and manage performance failures

Training Methodology 

This collaborative Vendor Qualification, Performance, and Contract Management Course will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

The Vendor Qualification, Performance, and Contract Management Course follows the ‘Do-Review-Learn-Apply’ model, that is designed and employed exclusively by Zoe.

Organisational Benefits

A vendor qualification and performance management system in an organisation can bring many, amongst the following benefits:

• Better selection of vendors, resulting in efficiency and cost savings
• An efficient vendor performance management system, which will enable effective and timely procurement-related decisions
• Better contract management enabling better decision-making capabilities and saving valuable time.
• Optimization of inventory levels through effective contract management
• Improved performance management through an integrated view of the performance of all the vendors which can highlight underperforming vendors, allowing to management vendors proactively
• Improved supplier relations leading to better procurement terms in terms of costing, quality, and delivery
• A greater value that can result through long-term savings, as well as, improved earnings

Personal Benefits

Professionals undertaking this course will benefit from:

• Detailed understanding and knowledge of all aspects of vendor qualification, performance, and contract management
• Tools and techniques to choose the right vendor for the applicable sourcing strategy
• Skills and understanding to effectively manage vendor performance
• Skills and understanding to effectively manage vendor contracts
• An understanding of the criticality of a supplier/vendor relationship
• Effective decision making and strategic skills to analyze data, and to make the most effective, best-suited decisions
• Enhanced foresight to effectively assess risks so that suppliers don’t negatively impact the organisation
• Increased knowledge and awareness on industrial best practices

Who Should Attend?

This vendor qualification, performance, and contract management course are designed for:

• Senior management and supply chain managers who could benefit from the vendor qualification, vendor performance, and contract management knowledge
• Sourcing, procurement, contracts, and project personnel who are responsible for selecting, onboarding suppliers, and managing suppliers
• Manufacturing, design, and quality engineers, who could be involved in the selection of Vendors, as well as, the improvement of vendor/supplier performance
• Quality Managers who are responsible for improving purchasing and supplier controls
• Regulatory and compliance professionals in-charge of approval of suppliers, components, raw materials, and services
• Anyone, including the document control specialists, who would want to understand the supplier qualification process, supplier performance
• Anyone looking to gain successful outcomes from contractual agreements

Course Outline

 Module 1: Vendor Management Overview

• Supply chain vision/mission
• Supplier lifecycle management
• Organisation supplier strategy
• Deployment of strategy and expectations

Module 2: Vendor Pre-Qualification

• Distinguish between supplier and vendor
• Establishing the goals and objectives of sourcing
• Product/service requirements definition
• Supplier selection planning
• End-user involvement in supplier management
• Compiling supplier selection criteria
• Supplier segmentation

Module 3: Supplier Evaluation & Selection 

• Vendor/supplier pre-qualification questionnaire
• Supplier evaluation
• Checklists, scorecards
• Quality management systems
• Performing a supplier assessment
• Iso certification/certification of suppliers
• Setting acceptance criteria
• Developing an approved supplier list

Module 4: Supplier Due diligence

• What is supplier due diligence
• Why is it necessary
• Supplier due to diligence framework
• Steps ensuring supply chain compliance

Module 5: Relationship Management

• Supplier onboarding
• Communication
• Leadership and collaboration

Module 6: Supplier Performance Management System

• The setting of objectives that are aligned with the goals of the company
• Designing a performance measurement system
• Developing a supplier performance system
• Supplier performance management and metrics
• Balanced scorecards

Module 7: Supplier Performance Monitoring and Improvement

• Rating the individual supplier
• Ranking your suppliers
• Disseminating the results
• Rewarding good behaviour
• Supplier recognition
• Assess nonconforming product/process/service

 Module 8: Supplier Audit / Quality Management

• Preparing a detailed Supplier Audit Program
• Audit team selection
• Prepare a checklist
• Audit
• Reporting
• Follow-up & Review
• Code of Ethics
• Compliance
• Confidentiality

 Module 9: Supplier Risk management 

• Principles of risk management
• Types of supplier risks
• Supplier risk assessment process
• Frequency of supplier audits
• Defining risk in the audit program
• Compliance risk assessment
• Steps to mapping risk profiles

Module 10: Supplier Breach of Contractual Agreement or Terms

• What is a breach of contract?
• Types of breaches
• Different remedies available
• Determining the quantum of damages
• Liquidated damages
• Equitable damages
• Court injunction

Module 11: Problem-solving and resolution Overview

• Supplier Corrective and Preventive Action (CAPA)
• Lean Six Sigma principles
• Root cause analysis, 5 Why analysis
• Prioritizing the root causes
• Improvement Plans
• Control Plans